This mobility is not specific to mediclaim policy holders alone, it would be extended for motor insurance policy holders as well.  With this move from Irda becoming reality, insurance service providers will have to buckle up to protect their customer base.

Simply put, these norms on implementation would allow consumers to switch their insurers for their health insurance policies, just like mobile number portability that allows the telecom subscribers to switch their service provider while retaining the mobile number.  It is a different matter that the much talked about mobile number portability is still to be implemented in the country, though it has been proposed for quite some time.

Addressing the CII insurance summit here this morning, Irda Chairman J Harinarayan said “It is high time that the insurance industry also moves to offer portability so that the mediclaim and motor insurance policy holders can switch their service provider...We have initiated a debate on the idea of portability and we would be arriving at a conclusion very soon.”

On whether portability concept would apply to Ulips also, he said: Yes in the sense that there has to be a balance in the churn of Ulip’s policy and their portfolio has to be evenly managed. Further, he also suggested major overhaul in the regulations for insurance sector is in the offing. He said Irda will come out with “merger and acquisition (M&A) norms soon for insurers and a committee is studying the issue currently”.

To a question on the status of Reliance General Insurance acquiring a south-based insurance company, he said, “We have certain issues which we are trying to resolve through discussions.”

As far as IPO guidelines for insurance companies, the capital market regulator, Securities & Exchange Board of India (Sebi) is expected to come out with the IPO norms for insurance companies shortly, added Narayan.